ALEXANDRIA, Va. – NCUA said deposits made by the state of Wisconsin’s College Savings Program under its 529 Savings Plans into credit unions are insured up to $100,000 by the National CU Share Insurance Fund.
In a new legal opinion, NCUA said the 529 College Savings Program deposits are insured as a government account because the state board qualifies as a public entity.
The state of Wisconsin has created a credit union deposit trust fund under its 529 College Savings Program, from which funds are deposited into the state’s federally insured credit unions. The 529 program is a qualified tuition savings program under the Internal Revenue Service’s tax code. Under state law, revenue from the credit union trust fund must be deposited with federally insured credit unions in Wisconsin.
Because the Wisconsin College Savings Board is the owner of the CU trust, the funds qualify for insurance by NCUSIF as government deposits.
